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Johannesburg - Anglo Platinum, the world's largest platinum producer, said on Monday that it would create some 5 000 jobs at Twickenham, on the eastern limb of the Bushveld complex.
Duncan Wanblad, joint acting CEO of Anglo Platinum, said capital expenditure of R5.9bn had been approved for the long-awaited Twickenham expansion.
Twickenham - which reported separately for the first time in 2007 - produced 9 300 ounces of equivalent refined platinum in 2007 and the expansion of the current operations was expected to increase output to 180 000 ounces a year by 2016, when the mine would reach steady state.
Anglo Platinum said it expected capital expenditure for 2008 to be between R10.5bn and R11.5bn.
The company spent R10.7bn in 2007.
Wanblad said Anglo Platinum's spend would continue unabated and despite South Africa's power supply concerns.
"Electricity supply growth remains key to production growth," said Wanblad, but he said with few exceptions the company's expansion projects remained on time and within budget.
The group said it was continuing its expansion programme because of its confidence in the continued robust demand for platinum.
"The rate of expansion is reviewed on an ongoing basis against Anglo Platinum's growth strategy. The long-term outlook for metal prices remains positive, and consequently studies evaluating the ramping up of various projects continue," the group said in a statement.
However, Wanblad did warn that Anglo Platinum would find it harder to achieve its planned compound annual average growth of 5% in the short term.
Production shortfall in 2007 meant the gap between output and its target would widen in the coming year.
Anglo Plat produced 2.47 million ounces of platinum in 2007 and it expected refined ounces to fall to 2.4 million ounces in 2008.
He added that strong global demand for resources was placing material inflationary pressure on capital expenditure and the ability to meet project schedules, the effect of which was experienced in the latter part of 2007.
These pressures are likely to continue in the foreseeable future.
- I-Net Bridge